Skip to Content
Premium Article

Fidelity Blue Chip Growth's Conservatism Pays Off

Attention to valuations is a plus in this market.


Keeping an eye on price has been right for Fidelity Blue Chip Growth Fund (FBGRX).

This fund's technology stake isn't small, but some of its more-aggressive peers have, to their detriment, stashed considerably more in the sector. According to Fidelity, manager John McDowell had put 31% of the fund's assets in tech stocks as of December 31, 2000, while the typical large-growth offering had stashed 39% there. McDowell is more sensitive to valuations than a lot of large-growth managers, so that underweight is no surprise. Moreover, within tech McDowell's valuation consciousness has kept him out of speculative Internet-related fare. That gave the fund a leg up on its peers in 2000's tech bloodbath, when it outpaced its average rival by three percentage points. For the year to date through February 12, 2001, the fund is also ahead of nearly two thirds of its peers.

This article is exclusive to Morningstar Premium members.

Start a 14-Day Free Trial

Scott Cooley does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.